SNB's Jordan: We have a slightly deflationary environment
Comments by SNB chief, Thomas Jordan, at a UBS event
- We do not expect a rapid recovery
- Making forecasts at this moment is very difficult
- It is crucial lockdown restrictions are reduced whenever possible
- Must ensure that monetary conditions remain accommodative
- SNB willing to intervene in currency markets more strongly
- Negative rates and interventions are particularly important at the moment
Nothing out of the usual from Jordan, as he reaffirms the central bank's commitment to intervene strongly to limit the franc strength. In any case, I reckon he can breathe easier after seeing the recent developments today in response to the EU recovery fund proposal.
EUR/CHF has climbed strongly to near 1.0690 currently and is well off the "floor" near 1.0500 that it was hovering around over the past few weeks.